Wirecard calls in independent auditors

Wirecard calls in independent auditors

Payments processor Wirecard has commissioned an independent audit of its accounts by KPMG as questions mount over allegations of improper accounting.

Wirecard shares slumped by 15% last week after the Financial Times published documents on alleged attempts to inflate sales and profits at its businesses in Dubai and Ireland.

The report is the latest in a series of rolling investigations by the newspaper, which earlier this year printed allegations of fraud and dodgy accounting at Wirecard's Singapore office.

The latest revelations come from internal company spreadsheets and related correspondence between members of Wirecard’s finance team, which appear to indicate an effort to mislead EY auditors on the true state of the P&L book at subsidiaries in Dubai and Ireland.

Wirecard has denied the FT’s allegations, saying that although Dubai-based subsidiary Card Systems was not individually audited, its books had undergone “full-scope” scrutiny by EY. The firm has accused FT reporters of working in collusion with short sellers in Germany - a claim which has yet to be proven.

However, law firms investigating the allegations have pointed to a number of unusual accounting entries in the documents published by the FT and called for an independent audit.

With its share price still in the doldrums, Wirecard has submitted to the demands, appointing KPMG to conduct an additional independent audit to "clarify fully and independently all accusations raised".

Wulf Matthias, Wirecard chairman, says: “We have complete confidence in the audit procedures performed to date and their results. We assume this renewed independent review will lead to a final end to all further speculation.”

Comments: (1)

A Finextra member
A Finextra member 22 October, 2019, 06:46Be the first to give this comment the thumbs up 0 likes I thought that an auditor was supposed to be ’independent’ and give an unbiased view on the accounting and management being according to law and best practices including risk handling. What are the regulator requirements on a payment institution book keeping? The stock market requirements on audits?